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| = SETTING UP ACCOUNTS =
| | #REDIRECT [[Accounting#Chart of Accounts and Account Types]] |
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| A chart of accounts (COA) is a financial organizational tool that provides a complete listing of every account in an accounting system. Solace Account let the user create and organize his own list of accounts but if the use is unease to create one, templates are available to speed the process and avoid misconfiguration. Each of these accounts is linked to a certain type and a financial classification.
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| It is critical to understand financial classification and account type before creating or modifying an existing list of accounts as these will be the fundamental tool in financial and general account reporting.
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| Account Type
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| 1 - BALANCESHEET ACCOUNTS
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| Balance Sheet Accounts are used to track the money and values you own or owe. These values are the business assets and liabilities.
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| 2 - INCOME STATEMENT ACCOUNTS
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| Income Statement Accounts are used to record income and expenditure activities of the trading business.
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| '''Income''' is the payment you receive for your time, services you provide, or the use of your money. When you receive a paycheck, for example, that check is a payment for labor you provided to an employer. Other examples of income include commissions, tips, dividend income from stocks, and interest income from bank accounts. Income will always increase the value of your Assets and thus your Equity.
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| '''Expense''' refers to money you spend to purchase goods or services provided by someone else '''for early consumption'''. Examples of expenses are a meal at a restaurant, rent, groceries, gas for your car, or tickets to see a play. Expenses will always decrease your Equity. If you pay for the expense immediately, you will decrease your Assets, whereas if you pay for the expense on credit you increase your Liabilities. These two types are grouped in categories to facilitate reporting. These categories are called '''Financial Categories''' in Solace Accounting.
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| Account Classification Categories
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| Solace Account has a predefined list of categories that will help produce financial report like Revenue Statement, Balance sheet and others. These are predefined but the description of each category can be changed to suit the business convention.
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| INCOME STATEMENT FINANCIAL CATEGORIES
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| {| class="wikitable"
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| |-
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| ! Sales
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| ! Principal income group of accounts, generally constituting the main part of the turnover in nominal business trading
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| !
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| |-
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| | Cost of Sales
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| | This is also called Cost of Goods Sold. Turnover generated in trading.
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| |-
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| | Other Income
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| | Income outside of the normal trading activities.
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| |-
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| | Expenses
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| | Trading expenses.
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| |-
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| | Tax
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| | Trading tax charged
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| |-
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| | Dividends
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| | Shareholders distributions from the financial year earnings.
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| |}
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| ''' '''
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| BALANCE SHEET FINANCIAL CATEGORIES
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| {| class="wikitable"
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| |-
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| ! Share Capital
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| ! Shareholders’ funds raised in the business in exchange for chares.
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| ! L
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| |-
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| | Retained Income
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| | Portion of net income not paid out as dividends. Generally, from previous years.
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| | L
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| |-
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| | Shareholders Loans
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| | Loans given to shareholders.
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| | L
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| |-
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| | Long term borrowings
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| | Loan repayable for a period longer than a year.
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| | L
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| |-
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| | Other current liabilities
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| | Current liabilities that are not assigned to common liabilities such as debt obligations, VAT, provisions etc.
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| | L
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| |-
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| | Fixed Assets
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| | Long-term tangible piece of property, equipment or plant the business owns. Also called noncurrent assets.
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| | A
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| |-
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| | Investments
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| | Assets or item purchased or money committed that will generate income in the future.
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| | A
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| |-
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| | Other Fixed Assets
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| | Intangible assets such as patents, trademarks and copyrights.
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| | A
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| |-
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| | Inventory
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| | Raw materials, work-in-progress products and finished goods ready for sale.
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| | A
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| | Accounts Receivable
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| | Money owed by entities to the business. This is generally customers.
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| | A
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| |-
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| | Bank
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| | Cash on hand at bank and cash overdraft.
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| | A
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| |-
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| | Other current Assets
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| | All non-cash assets convertible in one year, they are other working assets such as advanced paid to suppliers and employees and petty cash and all prepaid expenses.
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| | A
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| |-
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| | Accounts Payable
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| | Money owed by the business suppliers and all obligations to pay off a short-term debt.
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| | L
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| |-
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| | Taxation
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| | Money owing to tax authorities.
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| | L
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| |-
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| | Other long-term liabilities
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| | Other loan repayable over periods than a year or financial cycle.
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| | L
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| |}
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| To print financials categories report
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| From '''Main screen '''click on '''Reports''' button
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| Click on '''General Ledger''' button on the left reports navigator
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| Double click on '''Financial Categories''' report button
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| {| class="wikitable"
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| ! Note: This list can be edited and only the descriptions can be changed.
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| |}
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| To edit financial categories
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| From '''Main screen''' click on '''Control Panel''' button
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| Click on '''Company Parameters''' button in the navigator.
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| Click on '''Financial Categories''' button in the left navigator of the new screen.
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| Change the translate column
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| Click on apply button
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| = ENTER BASIC INFORMATION. =
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| To Create a new ledger account
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| From the main screen click on G'''eneral Ledger''' button in the left navigator panel
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| Double click on G'''eneral Ledger''' button under '''General Maintenance''' group
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| Select correct financial category to link the new account with in the tree.
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| Click on the '''New '''button. This will clear all the entry boxes
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| Enter the code, description
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| Ender Settings tab, select the account type group
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| Select the financial category
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| Click on save.
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| {| class="wikitable"
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| |-
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| ! Note: In the chart of accounts tree, income expense categories are listed in bold black and balance sheet categories are listed in bold blue.
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| |}
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| To Edit a ledger account
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| Open the same screen as to create a new account
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| Type in the account code to edit in the bottom left box, this will auto locate the account in the tree and fill in the edit boxes
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| Change the details accordingly
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| Click save
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| To Delete a ledger account
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| Open the same screen as to create a new account
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| Type in the account code to edit in the bottom left box, this will auto locate the account in the tree and fill in the edit boxes
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| Click on delete button
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| {| class="wikitable"
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| |-
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| ! Note: Any account with balances cannot be delete in the same way any account with balances cannot be change from Income Statement to Balance sheet orvise-versa
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| |}
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| To print the list of accounts
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| From the main screen click on '''Reports''' button in the left navigator panel
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| Click on '''General Ledger''' in the left navigator
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| Double click on '''Chart of Account''' report button to display the report option
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| Fill in all options then click print.
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| = SETTING UP CUSTOMER OR SUPPLIER ACCOUNTS =
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| Customer accounts details are very similar with supplier accounts details and sharing the same entry screen very closely.
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| To create a Customer Account
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| From the main screen click on '''Customer'''s button in the left navigator panel
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| Double click on '''Customers''' button under '''Accounts '''group
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| Click on the '''New '''button. This will clear all the entry boxes and propose a new account code. If this is not the wanted code, type in a code that follows the company specifications.
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| Enter description and all customer’s details.
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| The '''Processing tab''' contains information used by Solace Accounting when this account is used in journals transactions, documents and other transactions and are grouped in five blocks.
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| - '''Transactions'''
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| '''* Aging: '''two types of aging are available, the '''Balance Forward''' and '''Open Item.'''
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| In Balance forward mode, all payments are linked to the oldest due amount.
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| In Open Item mode, each payment is linked to a matching due amount.
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| * '''Currency: ''' in multi-currency mode this will determine the trading currency rate to use for transacting with this account.
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| -'''Documents'''
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| '''* Printing: ''' On completion of a document attached to this account, this printing mode
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| will be used as default.
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| * '''Email Format: ''' Determines the format use when emailing documents to this account.
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| - '''Tax'''
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| '''* Mode: ''' Default mode of for Tax
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| * '''Tax Type:''' Default tax type used.
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| * '''Tax Reference: ''' Customer Tax Number. This number will also appear on the printed customer document (invoice, credit note etc.)
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| -'''Others'''
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| '''* Sales Person: '''Default sales person attached to this account. This option is used in connection with commission earned by sales persons - Check Module on setting sales persons.
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| * '''Car Number: ''' Customer card number used with the global settings on system parameters card system enabled.
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| The '''Terms tab''' allows you to setup early terms and pricing regime.
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| {| class="wikitable"
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| ! Note: It is important to establish payment terms so that you know when the customer is overdue. This is your normal term. The early term is also known as settlement term discount is the discount to encourage customers to pay as soon as possible. Terms are created “Control Panel” “Payment Terms” screen.
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| |}
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| '''- Terms'''
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| '''* Days based Terms: '''This option is used for aging outstanding balances per day.
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| '''* Monthly based Terms: '''This option is used for end of period aging.
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| '''* Early Terms: '''With this option, you can set a percentage discount and the number of days within which the customer must pay in order to get the discount. If you do not want an early payment term, enter 00. If the list is empty use “'''Control Panel” '''to create terms.
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| '''* Normal Term: '''In this option you enter the period expected for the customer to settle his account. This is based on the first selection days based or monthly based.
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| '''* Interest From: '''With this option, you can change the customer interest on overdue amounts. You can specify when or whether Solace accounting should charge interest to this customer. This works in conjunction with “Normal Term” selected option.
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| '''- Entry'''
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| '''* Price Regime:''' In Solace Accounting, you can use up to 10 different price regimes. This option let you choose which regime to use by default for this customer. The price regime can be changed on document entry screen.
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| '''* Credit Limit: '''Solace Accounting give you the ability to set a credit limit to each customer, should the customer balance exceed this limit a warning will be prompted or the operation blocked depending on settings. See Customer settings ender “'''Control Panel'''”.
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| '''* Discount %: '''Also, called invoice discount, is a trade discount which applied to the invoice total value. It is additional to any line item discount. If Solace Accounting find a value in this option, then it will be applied to any invoice for this customer.
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| The '''Sub-Account tab''' gives the ability to create sub accounts for suppliers an customers. Using this option, Solace accounting will display '''Statement Report''' and '''Age Analysis Report''' with more details about agglomerated accounts. This is useful when dealing with companies that has branches and need transaction grouped by branches and many other similar cases.
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| '''- Details'''
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| '''* Code: '''Sub Account Code, which is a full code completely separated from the main account code.
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| '''* Surname: ''' The name or description of the sub account
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| * '''Name: ''' also used for extra name or sun account description.
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| '''* Blocked:''' if ticked, this account will ne be used in any transaction but can still appear on report depending on selected options.
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| * '''Card Number:''' This is used for quick look up and search. It is an alias to the code.
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| The '''Contacts tab '''allows the user to attach contact persons to the main account. The tab provides contact account management, new, edit and delete. The print button will list only the contacts for the current account, the full contact list can be printed from main report screen.
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| The '''Contacts tab '''allows to create notes for the selected account. On the main screen, Solace Accounting displays the active notes under '''Reminders''' list on the right side of the main screen.
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| {| class="wikitable"
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| !
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| ! Solace Accounting will update this list with any note added and will keep the note on the list until the note expiry date. Most of the elements in solace accounting can have notes and the full list can be acknowledged from the Edit notes main Screen. This list is refreshed Avery few minutes to allow any new note from other user to be displayed.
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| |}
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| -To Create a note:
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| Click on '''New''' button from the note tab. This will open the main '''Edit Note '''screen
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| If a list appears on the left then no account was select. Close the note edit screen and from the account edit select a customer/supplier account the from Notes tab click new.
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| Enter the Subject description
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| Select Start Date
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| Select End Date
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| Select Status
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| Chose the visibility.
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| Public: All users on the system will see this on the reminder list.
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| Private: This not is only visible to the user that created it and no other user can see it.
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| Type in your Note body in the main edit box.
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| Click Save.
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| Click close to discard or cancel note.
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| After few seconds, the main Reminder list will be updated
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| The '''Contacts tab '''allows to enter more addresses for one account and this is selectable on document entry screen.
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| The '''Extra Details tab '''allows set a picture or photo for the account. This is used on Point of Sale account lookup for account verification. The load Button will load the image and save directly into Solace data and all user will access the loaded picture. Clear button will remove the picture.
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| = USING CATEGORY IN SOLACE ACCOUNTING =
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| Categories are used for reporting purpose. This will help refine the report options and produce more detailed reports. Before using categories in reports, Category name need to be edited to give meaningful description and up to 10 types of category is allowed in the system.
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| The process of creating and using categories is the same for customers, suppliers, ledger account and Inventory items. We will use the inventory for this context.
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| For customer categories see Control Panel/Customers, for suppliers, see Control Panel/Suppliers.
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| To setup categories parameters.
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| From main screen, click on''' Control panel''' button
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| Click on Inventory (Customer or supplier) to access particular category type. In the image below, we used inventory categories.
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| Click on '''Category Names '''on the left menu to display the editor
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| Change each name accordingly. (We only changed the first 3 in the image below)
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| Click on apply
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| To populate Category type.
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| From main screen click in inventory (Customers or suppliers)
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| Double Click on '''Inventory Category''' the Inventory category edit screen will open.
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| Click on the left list on the category to edit to display the tree root in the right panel.
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| Click on the category root in the right panel.
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| Click on '''add '''button, the system will insert a new blank category with [...] as description.
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| Click on the ellipsis [...] or press F2 then type in the category description
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| To add another category on the same level, click first the root to select it then click the add button to get […]. etc.
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| To add a sub category, click the category (Office furniture) then click add.
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| To attach inventory item (Customer Account or Supplier Account) to categories
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| After setting all categories, now inventory (also customer accounts and supplier accounts) can be linked to categories using their editors. On inventory editor
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| Click on category drop down button
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| On the category selection screen tick (double click) to select the desired category
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| Click ok button to confirm selection
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| Click save to save the inventory change
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| To use categories to filter report options
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| Whenever available, the report options will list category selector in the options list. Let use Inventory price list report. Go to reports manager and select inventory reports.
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| Categories can be used anywhere the options is listed.
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| = WERE FROM HERE =
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| There is still much more to learn about solace accounting and we encourage to read all other module to master the system and maximize the user experience and considerably improve your company rentability et efficiency.
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